Monday, November 5, 2007

The REAL "Inconvenient Truth"

"Nobel Peace laureate Al Gore believes global warming is 'an inconvenient truth.' Here are some economic truths that America's liberal leadership finds too inconvenient to support. Tax-rate reductions increase tax revenues. This truth has been proved at both state and federal levels, including by President Bush's 2003 tax cuts on income, capital gains and dividends. Those reductions have raised federal-tax receipts by $785 billion, the largest four-year revenue increase in U.S. history.

In fiscal 2007, which ended last month, the government took in 6.7% more tax revenues than in 2006. These increases in tax revenue have substantially reduced the federal-budget deficits. In 2004 the deficit was $413 billion, or 3.5% of gross domestic product. It narrowed to $318 billion in 2005, $248 billion in 2006 and $163 billion in 2007. That last figure is just 1.2% of GDP, which is half of the average of the past 50 years. Lower tax rates have been so successful in spurring growth that the percentage of federal income taxes paid by the very wealthy has increased... Finally, another inconvenient truth is that there have been 49 consecutive months of job growth as a result of the economic expansion induced by President Bush's 2003 tax rate reductions."

--Pete du Pont

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